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A PAPER PRESENTED ON WOMEN, BUSINESS AND FINANCIAL INCLUSION IN AFRICA AT THE INTERNATIONAL CONFERENCE ON WOMEN AND THE POST 2015 DEVELOPMENT AGENDA: The Challenges of the Sustainable Development Goals (SDGs) BY MRS. MENGA ROSALINE. Date: Friday 22nd May 2015 Venue: The Church Village, Via di Torre Rossa 94 Rome INTRODUCTION The African continent has witnessed a very slow economic growth during the last century. The reasons for this are numerous notably wars, illiteracy, poverty, diseases, colonization, exploitation by the West of the rich natural resources, bad governance, unfavorable traditional practices, and discrimination. All these have hampered meaningful development. In many African countries women have always been active in agriculture, trade, and other economic pursuits, but a majority of them are in the informal labor force. Many of them are illiterates and live in poor rural communities. They often do not enjoy equal opportunities with men. The attitudes towards women, by both men and women themselves, have often suppressed the development and advancement of women. The economic policies of many African countries are yet to provide low-income households and other vulnerable groups enough opportunities to improve on their living standards in terms of economic indicators. Their existing socio cultural norms have so far restricted girls’ and women’s access to education, training and employment opportunities. Dropout rates in the primary grades are higher for girls than for boys in many African countries. In Tanzania, for instance, half of the school dropouts each year are girls of 12 to 14 years who have to leave school because of pregnancies. Child marriages are also very common in Africa. Although the law in many African countries does not allow girls under 16 to be married, poor parents consider it as a source of income. African governments themselves have done very little to promote women’s participation in the economic sector, training and employment. Women are guardians of their children’s welfare and have explicit responsibility to provide for them materially. They are the household managers providing food, nutrition, water, health, education and family planning to an extent greater than elsewhere in the developing world. This places heavy burden on them. Lack of resources and pressures on time and energies put enormous constraints on the ability of women to maintain their own health and nutrition as well as that of their children. Inheritance land rights have remained the reserve of the boy child and men. Women in Africa are often overlooked in key economic development, yet they make vital contribution to the global economy. In only three African countries - Ghana, Nigeria and Uganda - do women take part in business at rates equal to men and even then they do not reach their potential. An overview of the current situation in Africa on women and economic development and financial inclusion will help us appreciate the stark reality in which the African woman finds herself. The African Woman and the Economic Development Dilemma - An Overview One of the major areas in which we see how deprived the African woman is in terms of economic growth and development is in the area of Financial inclusion. According to the ADB Staff Report, Africa has been lagging behind other continents in Financial Inclusion. Less than 1 adult out of 4 in Africa have access to an account in a formal financial institution (ADB Staff Report). Unequal access to education and training opportunities also has led to low proportions of women in the formal sector and their much concentration in low paid jobs with limited career prospects. Even when parents can be persuaded of the value of sending their girls to school, there remain the problems of helping the girls to complete their studies. Sandra Taylor and Narjess Boubakri examine that women are less likely to use formal financial services mainly because they have lower incomes, are less educated and are more likely to operate in the informal sector despite developments such as improved agricultural technology and changes in women’s socio economic status. Women’s economic capabilities, and in particular their ability to manage family welfare, are being threatened. “Modernization” has shifted the balance of advantage against women. The legal framework and the modern social sector and producer services developed by the independent African countries have not also served women well. So, although women play an important role in African society, they suffer legal, economic and social constraints. Indeed some laws still treat them as minors. In Democratic Republic of Congo for instance, a woman must have her husband’s consent to open a bank account. Women are known to grow 80% of food in Africa, and yet few are allowed to own the land they work on. It is often more difficult for women to gain access to information and technology, resources and credit than men. Agricultural extension and formal financial institutions loan policies favor men the most despite women’s importance as producers. Women end up working twice as long as men 15 to 18 hours a day, but often earn only one tenth as much. With such workloads women often age prematurely. In industry and trade, women have been confined to small-scale operations in the informal sector, however vibrant these operators are and despite the trading empire built up by the most successful female entrepreneurs, women’s average income are relatively low. Inclusive employment therefore remains a major factor for every economic system oriented towards justice and the common good. But the reverse is the case with most African families. Women’s “double shift”, at home and at work, undoubtedly affects their professional progress. Their home shift may in most cases include caring for parents, in-laws and younger siblings. Women are also handicapped to access to formal sector jobs by their lower educational attainments. More than two-thirds of Africa’s illiterates are women (UNESCO 1991). Women are regarded as inferior to men and are not expected to aspire as high as men, especially in what is considered as “male” fields such as engineering, computing, architecture, medicines etc. It is largely assumed that educating women would make them too independent. As a result, women are less well equipped than men to take advantage of the better income-earnings and opportunities that have emerged in Africa. There is often more respect for male professionals even from women themselves than there is for the female. In addition women often have to work twice as hard as men to prove that they are also capable of doing their jobs well. Despite all this the role of women is often taken for granted. There is often a conflict between the three roles of mother, wife and employee which causes many to feel a sense of guilt and give up employment. Many African countries have achieved high growth rates over the past decades, and aspire to structural transformation. But despite this growth the “Arab Spring” events showed that good economic growth in the continent had, not translated into significant poverty reduction, shared prosperity and better livelihoods for the majority. The church’s social teaching states: “Nothing that concerns the community of men and women’s situation and problems regarding justice, freedom, development, relations between people, and peace is foreign to evangelization because, profound links exists between evangelization and human promotion. Therefore the family must rightfully be seen as an essential agent of economic life, guided not by the market mentality but by the logic and sharing among generations. A better-educated workforce is a key to active participation in a globalized world. They range from programs that support women’s legal rights to rural programs that support sustainable development and resource management”. A number of studies have been done on women’s under-representation in the scientific and technical fields, by ATRCW (1986), Harding (1987), Lockheed and Gorman (1987), etc. Some of the factors which they state influence women’s participation are prejudices about women’s abilities and attitudes, their roles, their behavior and aspirations, culture, politics and society, absence of role models, parental expectations, beliefs, attitude and home environment, teacher attitudes and behaviors, curriculum, career guidance, employer attitudes, lack of books and resource materials, lack of educational and training facilities, lack of quotas, lack of exposure to technically oriented subjects, group pressure at home and at school, classroom interactions between boys and girls, and lack of confidence to try new things. Women’s general literacy rate and scientific and technological knowledge have to be addressed before any progress can be achieved sustainably. Interestingly, the dynamics of the global workforce have experienced some improvements. An increasing number of ambitious, educated and talented women in Africa are entering the business world with great drive and even greater career aspirations. Unfortunately despite this influx, many corporations still struggle to discourage their female talent. CASE STUDY: A CASE STUDY OF WOMEN’S BUSINESS AND FINANCIAL INCLUSION IN CAMEROON After having presented an overview of the challenges women in Africa face in relation to Business and economic development, I would like us to look at the Cameroon situation, being a Cameroonian myself before looking at the way forward for the African woman. In Cameroon, exclusion from financial services is particularly acute in the agricultural sector, which employs about 60% of the country’s population, a majority of whom are women. This is principally because of the high cost of establishing branches of formal financial institutions in sparsely populated areas. VENTURES AFRICA – The International Finance Corporation (IFC), a member of the World Bank Group, has recently announced an advisory service agreement with Micro Finance Institute; Advance Cameroon geared at expediting the rate of financial inclusion in Cameroon by expanding the range and reach of services available to underserved urban and rural population. This agreement is under the umbrella of Partnership for finance inclusion, a $37.4 million joint initiative by the IFC and the Master Card Foundation set up to scale up “Commercial Microfinance and develop mobile financial services to increase financial inclusion in Sub-Saharan Africa. THE WAY FORWARD: SOME RECOMMENDATIONS After having given an overview of the current reality of the African woman in terms of business, economic development and financial inclusion, and briefly reflected on the Cameroon situation, the question we would like to address is: What is the way forward. I have a few recommendations: a) Financial Inclusion: One key component of inclusive development which Africa has been lagging behind other continents as I mentioned earlier in this paper is financial inclusion. The concept of inclusive growth is multifaceted and has financial inclusion as one of its main building blocks. Financial inclusion is a multidimensional concept that encompasses all initiatives from both supply and demand sides, within the financial sector. Financial inclusion is therefore necessary to ensure that economic performance is inclusive and sustained. This will promote initiatives that make formal financial services available, accessible and affordable to all segments of the population that have been historically excluded from the formal financial sector either because of their income level, gender, location, type of activity or level of financial literacy. Angela Hansen takes stock of financial inclusion for rural areas and agriculture in Africa. She predicts that new model based value chain funding (VCF) and information and communication technology (ICT) will have a transformative role in expanding financial inclusion for agriculture and rural development in Africa. As cited by the Compendium of the Social Doctrine of the Church No. 62.” The way people live together in society often determines the quality of life and therefore the conditions in which every man and woman understand themselves and make decisions concerning themselves and their vocations. For this reason, the church is not indifferent to what is decided, brought about or experienced in society; ………. and with it, politics, the economy, labor, law, culture- is not simply a circular and worldly reality, and therefore outside or foreign to the message and economy of salvation……….. Society is made up of men and women who are the primary and fundamental way for the church”. This doctrine discourages sex-stereotyping on the parts of parents, educators, religion, media and the society at large who have the belief and impression that certain jobs are exclusively for men, and women’s own lack of confidence that discourages their entry into certain fields and jobs. b) The need for Effective and Authentic Family Policies that respect the rights of all: The church proposes that the family should have authentic and effective family policies that are able to meet the needs and respect the rights of all. Therefore work for instance should not be discriminatory; it should give all family members equal rights to property and contribute to the good of the entire family. Narrowing the gender gap in employment will increase global income per person by as much as 20% by 2030. Giving women a greater stake in the economy of their countries to set up their own well structured enterprises will enable them to be employed, earn an income, contribute to their own financial stability and that of their families in whatever way they choose. c) Investing in our collective Future: In emerging markets women re-invest 90% of their earnings in their families and communities. This means investing in women is an investment in our collective future. “Investing in business women will boost the economy for everyone” (Tony Burch). Women are crucial to the economic growth around the world. According to the Global Entrepreneurship Monitor, there are 126 million women operating new businesses and another 98 million at the helm of established ones. Yet we face a huge equality gap. There is certainly a need for more education and training opportunities for girls and women in Africa both for overall national development and to improve their quality of life. It has often been said that, if there were more female lecturers who could act as role models to girls, these would possibly bring an increase in the number of girls attending and completing school. d) Women and Entrepreneurial Education. Cardinal Turkson, Former Archbishop of Cape Coast Ghana and President of the Pontifical Council of Justice and Peace in Launching the English Version of Vocation of the Business Leader: A Reflection at the 8th International Conference on Catholic Social Thought and Management Education at the University of Dayton(June 1820, 2012) highlighted the importance of Christian Business or Entrepreneurship in serving the common good and enhancing co-creation, service, solidarity and sustainability. The vocation of The Business Leader is a document worth exploring by all of us especially women. As a way forward for sustainability, women need entrepreneurial education. Winning business concepts are just as likely to be conceived at the kitchen tables as in the garage or at business schools. Research shows that women doubt their capabilities and fear failure more than men. Training can equip them with the confidence to see bold ideas through. e) Economic Opportunities for women: The United States reaffirmed its belief in the importance of economic opportunities for women at the G.S Forum for the future, where the world’s leading developed countries declared that “equality between men and women as well as access to modernization and prosperity will empower the women economically and enhance sustainable development”. This therefore means that for sustainable and inclusive development to thrive, a great deal of innovation and thinking is needed to ensure that appropriate financial services and instruments are put in place, for the benefit of the poor and other vulnerable groups. There is need to enable them to develop their capacity, strengthen their human and physical capacity, engage in income-generating activities, manage risks associated with their livelihoods and be informed about existing opportunities and specific challenges that need attention and actions in the Legal and Regulatory Frameworks preventing women from accessing and using financial products and services in Africa. There is a need to reform regulatory frameworks and promote positive changes in the cultural norms, study women specific needs and create adapted financial products and services, encourage innovation, create support programs for women’s entrepreneurship, institute laws that protect female farmers by securing their land tenure, develop pilot buyers and food company value chain efforts, build transparent pricing platforms, and strengthen large-scale cooperatives. Most women don’t have these supports. f) “Forward Actors Programs”: Programs should be designed at the various country level to reinforce actions by policy makers, traditional rulers, church leaders, parents, educational authorities to promote positive and favorable actions that strengthen women and girls economic advancement. Women’s general literacy rate and scientific and technological knowledge have to be addressed before anything can be achieved. However it will be a tactful error to introduce programs only for women. Expanding the benefits of microfinance, to even more women will mean providing services to the extremely poor, creating safe and accessible savings instruments, using microfinance groups as a vehicle to address the HIV/AIDS crisis, and promoting women as leaders in the microfinance industry. CONCLUSION Recognizing that investing in women and girls, can contribute to significant poverty reduction and promote economic growth will enable women to participate actively in employment opportunities to enable them pursue a career and raise a family. There is no doubt that things are slowly changing for women in Africa. More women are joining the formal sector of the economy (especially the public sector). More girls are continuing to higher education and joining technical courses. More women can be found in the management hierarchy. More women are moving in professions so far dominated by men and more women are becoming self employed in the years to come. Secondly interest in and dedication to promoting financial inclusion has grown dramatically in recent years, as seen in the number of countries that committed to the Maya Declaration and the G-20 Financial Inclusion Action Plan, as well as strategies and targets set by individual governments to trade progress in achieving more inclusive financial system. Finally the world needs women entrepreneurs, and women entrepreneurs need all of us. It is time to provide the support and tools to ensure that in 2016 and beyond, women led businesses flourish. It is only then that we can talk of any meaningful sustainable development goals. THANK YOU.